4. Answer True or False for the following statements. Justify your answer if Fal

Question

4. Answer True or False for the following statements. Justify your answer if False. If the least-squares equation relating the independent variable x and the dependent variable y for a given problem is y 2 units in y. T The coefficient of determination R2 measures the variation in the dependent variable that is explained by the regression model. If your computed correlation coefficient is r= +1.2, then you have better than a perfect positive correlation. A student might expect that there is a positive correlation between the age of his or her computer and its resale value. In simple regression analysis, if the slope of the line is positive, then there is a positive correlation between the dependent variable y and the independent variable x. a. 2x+5, then an increase of 1 unit in x is associated with an increase of b- C. d. e. f. The coefficient of determination can assume negative values. g. A negative correlation indicates that as values of x are increased, values of y will decrease. h. If there is no correlation between the independent and dependent variables, then the value of the correlation coefficient must be -1.

Explanation / Answer

a) true as slope is 2 which gives increase in dependent variable with unit increase in independent variable

b) true; by definition coefficient of determination proivde variation in dependent variable.

c)false; as correlation coefficient can not be greater then 1.

d)false; as resale value will decrease with age.

e)true ; as slope reflect if dependent variable increase or decrease with unit increase in ndependent variable.

correlation coeffiicient also reflect if both variables increase or decrease together.

f)false ; as it is square value ; it can not be negative

g)true ; as this tends to give negative slope

h) F ; for no correlation; value of correlation coeffiicient should be 0/

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